The first step in the design phase (Phase 1 of the PCM cycle) is the identification of your project. The methodology used is called situation analysis. It consists of a series of tools that allow you to develop your project idea. It is the most important component of the project cycle because it facilitates the anchoring of the project activities to needs and priorities of the target group. At the same time, it is crucial to conduct it in the wider framework of beneficiaries’ priorities and the programme to which the project aims to contribute in the long term. Analysing the situation in the framework of international, national and local priorities:
• helps to identify the nature and magnitude of needs, prioritise them and establish the first criteria for developing the project idea;
• can be used by the project team as an institutional reference and starting point for the specific project’s situation analysis;
• helps to map the relationships among all those involved and to create a sense of ownership of the project and its future development;
• improves the whole project proposal in terms of sustainability, and emphasises how the project is part of a wider strategy.
Several tools exist for a situation analysis. To prepare a results-based project, the following will have to be done:
1. Stakeholder analysis and target group selection
2. Problem analysis
3. Objective analysis
4. Alternative selection.
The order in which to conduct the analysis will vary in line with the situation and the project. Indeed, stakeholder analysis and problem analysis are closely connected. People’s views on a problem are essential to understanding its nature and possible solutions. In most cases, an organization already has a broad idea of the problem they want to tackle through a specific project. A project can also be a way to implement part of a development strategy, or be part of a business plan. We therefore suggest that you start your situation analysis once you have set out the core problem. This problem could later be formulated better, during the problem analysis stage. Moreover, certain aspects of the situation analysis (e.g. the stakeholder analysis) need to be revised once the project has been approved but before getting into the real implementation phase, in case the project’s conditions change.
1.1Conducting a stakeholder analysis and selecting your target group
Starting the project design by analysing the stakeholders and their context helps ensure that the project is adapted to the organisations’ needs and capacities. But in many cases it is useful to start with the problem in order to identify all the stakeholders concerned. The focus of a results-based project is the target group. Since the project also aims at achieving sustainability, in addition to the target group, other players have to be considered at this stage, by understanding their potential role in the project and their interests and expectations in terms of benefits. Right at the beginning, it is therefore necessary to identify all the stakeholders likely to be affected (either positively or negatively) by the project and analyse their potential involvement in it. The stakeholders are “not only the people and institutions that carry out the project, but also those structures and organizations that play a role in the project environment”.
1.1.1 Methodology
As the first action in the project design process, people in charge of the project design can get organized into a group. This group is usually chosen when the first project idea emerges and – if implementation is confirmed – it could support the identification of the project team (including members of the design team). The main task of the project team is to coordinate the whole process and the project implementation. This does not mean that they are alone in carrying out the activities, but that they are accountable for them. In the ideal case, the project should be designed using participatory planning methods which actively involve the organisation members. For instance, a project design workshop combined with a series of brainstorming sessions, individual meetings, focus group discussions are very useful. Indeed, one single workshop often facilitates the prevailing of dominant positions, based on power, leadership and influence, whereas small group discussions allow better reflection, better participation by women and more inclusive plans, and generate stronger ownership by the members. In some cases, the capacities of less experienced stakeholders need to be reinforced. In other cases, stakeholders may abuse their power, and stakeholders might not be allowed to speak freely in front of them. This can also be due to a lack of capacity in participatory and inter-active methods. Although in practice this variety of participation and ownership rarely happens, due to many different factors, in the case of organisations, the team can build on consultation and management processes within the organisation’s governing mechanisms (such as for instance the general assembly, supervisory and working committees) The project team must bear in mind that there is a direct relationship between participation and sustainability, and should be aware of the risks of exclusive processes. A series of tools exist for identifying and analysing the different stakeholders. These tools will be presented during the training.
1.1.2 Selecting the target group (direct recipients and ultimate beneficiaries)
The target group is a group of people who will benefit from the project. Within the stakeholder analysis, the target group analysis is of particular relevance and requires special attention. In most projects, organizations will not deliver direct services to persons, but run services that build the capacities of organizations so they can provide new or better services to a certain group of people. We therefore need to distinguish between the direct recipients of project outputs or services and the ultimate beneficiaries. The direct recipients are those who are directly affected by the core problem, and who will benefit from the project outputs and services. The ultimate beneficiaries are those who will benefit from the project in the long term. During project design, it is particularly important to assess the capacity of the direct recipients carefully: are they really committed, do they have the resources (time, staff, etc.) to participate in the project, and do they have the capacity to play their role in the project? Building up the capacity of the target groups is crucial not only to achieving the project’s objectives and outputs, but also to ensuring that the benefits are sustained once the project ends.
Target group: Those benefiting from the project. You can distinguish between: - direct recipients (or direct beneficiaries): the group/institutions who will be directly affected by the project at the level of the outputs, e.g. primary organisation, a union or federation; - ultimate beneficiaries: those who benefit from the project’s development objective (such as local food security) in the long term, e.g. family of the organisation members, consumers and clients of products and services provided by the organisation. Project partners: Support and participate in the design and implementation of the project. They can be part of the project’s Steering Committee, e.g. Ministries, organisation apex body, trade unions, employers’ organizations, support agencies.
1.1.3 Analysing the target group: a SWOT analysis
As a parallel process in the analysis of the situation, a self-diagnosis of the capacity of the direct recipient to carry out the proposed project needs to be done through the analysis of the organisation’s or support organization’s strengths and weaknesses, as well as the opportunities and threats in the external environment (a SWOT analysis). The SWOT analysis is a powerful tool for carrying out a diagnosis of the target group. It can be used to complement and enrich the stakeholder analysis. A SWOT analysis examines both the internal and the external situation of the target group and partners. Therefore it is particularly useful in projects where the target group’s capacities might have a big influence on the achievement of the objectives, or when there are external elements in the context of the target group’s capacities that can affect the project. In a nutshell, a SWOT analysis can reveal the capacity of the target group and the implementation partners to perform their roles, as well as their comparative advantages. It can also show hidden obstacles to a potential project.
Strengths and weaknesses
Strengths and weaknesses are internal features of the target group that facilitate or hinder its ability to achieve certain results. Strengths and weaknesses are always relative to a certain goal. Therefore, when used for internal analysis of the applicant and partners, strengths and weaknesses analysis must concentrate on those features that can be positive or negative for participating in the project and providing and sustaining quality services to the target group.
When the SWOT analysis highlights a lack of capacities on the part of the applicant to perform all the activities listed in the project, the organization must find other partners among the stakeholders who can fill the capacity gaps.
Strengths and weaknesses can be modified to some extent by the project. Project designers should include measures to consolidate the key strengths and overcome critical weaknesses of the stakeholders, particularly ones that could compromise the sustainability of the project results. A good project strategy takes as much advantage as possible of stakeholders’ strengths. It is also important to take measures to neutralize the impact of weaknesses.
Opportunities and threats Threats and opportunities are factors in the context outside the target group that can trigger events which affect the organization’s ability to achieve certain results. Unlike strengths and weaknesses, threats and opportunities cannot be manipulated, since they are beyond the control of the organization. What the organization can do is develop strategies to maximize its ability to take advantage of the opportunities and to minimize any impact of the threats. Threats and opportunities are identified during project design. In this way, the project strategy can include measures to benefit from the opportunities. In addition, the strategy can include preventive action to lessen the negative effects of threats. Such measures would help to bring the negative effects down to an acceptable level at which the success of the project is not compromised.
1.2Analysing the problem
Every project aims to help solve a problem that affects the target group or groups.
The problem analysis identifies the negative aspects of an existing situation and establishes the “cause and effect” relationships among the problems that exist. The core problem of the target group must be clearly identified. It is essential to understand the root causes of the problem and the effects the problem has on the beneficiaries. This can be represented diagrammatically by constructing a problem tree. The causes are structured by clustering similar ones and by developing a hierarchy of causes. The problem tree has three different components:
1.2.1 The core problem
The core problem must be the starting point for every project. It provides the rationale and gives it meaning, in that it aims to make a significant contribution to solving a relevant problem for the target group. If the starting point for the project is a detected opportunity, then it is still important to identify the main problem (or challenge) hindering the desired situation from becoming reality. So, regardless of our initial positive or negative considerations when looking at the existing situation, we will always end up identifying the core problem (or challenge) to tackle.
1.2.2 The causes of the core problem
Each problem has its own history, and we have to find out what underlying factors (causes) have led to the current situation. Once identified, the causes (roots) of the core problem are located under the core problem:
The core problem is my toothache. Usually we stop at the first level of the cause, just going to the dentist to remove the caries. But it is a short-term solution, since the root of the problem was not tackled. I therefore need to ask all the relevant questions and make the cause-and-effect links, then change my dietary habits and solve the core problem in the long term.
The key purpose of this analysis is therefore to make sure that all the “root causes” are identified and subsequently addressed in the structure of the project, not just the “symptoms” of the problem. The key to a successful project is to tackle the causes of the core problem. Unless we do that, the problem will arise again.
1.2.3 The effects of the core problem
The cause-and-effect chain can also be continued beyond the core problem. In this case, the chain forms the set of events that are the effects of the core problem. All problems or needs are embedded in a social, political or environmental context and are often systemically linked to other needs. Therefore, anything affecting one area also interacts with others parts of the system. The core problem generates consequences or other problems. The effects of the core problem are in the form of more general social, environmental, political or economic conditions (usually negative) that result from the problem. They are placed on top of the core problem:
A problem analysis aims to understand the causes of the core problem you want to address with your project.
1.2.4 Building the problem tree
Key actions in building a problem tree:
1) Organise a participatory workshop, discussions and meetings with the target group and all the relevant stakeholders, paying particular attention to the ability of different groups (e.g. women or youth) to participate and voice their issues.
2) Starting with the core problem the project team identified at the beginning of the situation analysis, openly brainstorm on problems and their causes which stakeholders consider to be a priority. Each participant could write a problem on a card. All the problems will then be posted on a wall or flipchart.
3) Use the problems identified through the brainstorming exercise to reformulate the core problem and then begin to establish a hierarchy of causes and effects, as illustrated in The Diagram:
Diagram : Hierarchy of causes and effects
4) All other identified problems are sorted in the same way. The guiding question is “WHY?” More causes can be added
5) Connect the problems with cause-effect arrows
6) Look at the problem tree and verify its cause-effect links ù
Source: European Commission, 2004, Aid Delivery Methods, Volume 1 : Project cycle management guidelines, EC, Brussels
The exercise of building a problem tree is important as it is an opportunity to discuss openly the problems to address with all the stakeholders, whilst it is also a learning process. During the process, remember that not everyone will necessarily feel able to express openly the problems they have identified. This may be because they feel it may affect their relationships with others or because they are not used to speaking out in large groups. For example, gender issues might be seen as difficult to discuss in a large group even if they are affecting the business success of the organisation. In some cases, it may therefore be useful to set up smaller groups to brainstorm problems. The membership of these groups might be limited to one stakeholder group, e.g. women members or management board members. It is therefore important to determine whether the different groups of people perceive the problem in the same way.
Interviews and anonymous questionnaires may also be used to collect additional points of view. Although these techniques do not promote open dialogue and active participation, they provide additional data that might otherwise be inaccessible. The product of the problem analysis workshop will be a simplified version of the reality without trying to explain all the complexity of the problems. It is a summary of the existing negative situation. It is the most important stage of the project design because it will be the basis of the subsequent analysis and decision-making on the project priorities. Problems need to be stated as a subject, a verb and an object of the verb. They should not be stated as a lack of something because this presupposes the solution. When formulating the problems, it is important to avoid: • vague concepts such as “lack of infrastructure”: we should specify the type of infrastructure (feeder road, electricity network, school buildings) and the geographical place; • interpretation of problems: “too much bureaucracy in local government”: we should specify whether it is a problem of delays, of adequate support, of computerised system, etc.; • absence of a solution, such as “lack of money so young people cannot get vocational training”: we should analyse why they cannot get access to training: “fees are not affordable”.
PROJECT DESIGN - STEP 1: IDENTIFICATION, ANALYSISThe first step in the design phase (Phase 1 of the PCM cycle) is the identification of your project.
The methodology used is called situation analysis. It consists of a series of tools that allow you to develop your project idea. It is the most important component of the project cycle because it facilitates the anchoring of the project activities to needs and priorities of the target group.
At the same time, it is crucial to conduct it in the wider framework of beneficiaries’ priorities and the programme to which the project aims to contribute in the long term. Analysing the situation in the framework of international, national and local priorities:
• helps to identify the nature and magnitude of needs, prioritise them and establish the first criteria for developing the project idea;
• can be used by the project team as an institutional reference and starting point for the specific project’s situation analysis;
• helps to map the relationships among all those involved and to create a sense of ownership of the project and its future development;
• improves the whole project proposal in terms of sustainability, and emphasises how the project is part of a wider strategy.
Several tools exist for a situation analysis. To prepare a results-based project, the following will have to be done:
1. Stakeholder analysis and target group selection
2. Problem analysis
3. Objective analysis
4. Alternative selection.
The order in which to conduct the analysis will vary in line with the situation and the project. Indeed, stakeholder analysis and problem analysis are closely connected. People’s views on a problem are essential to understanding its nature and possible solutions. In most cases, an organization already has a broad idea of the problem they want to tackle through a specific project. A project can also be a way to implement part of a development strategy, or be part of a business plan. We therefore suggest that you start your situation analysis once you have set out the core problem. This problem could later be formulated better, during the problem analysis stage. Moreover, certain aspects of the situation analysis (e.g. the stakeholder analysis) need to be revised once the project has been approved but before getting into the real implementation phase, in case the project’s conditions change.
Starting the project design by analysing the stakeholders and their context helps ensure that the project is adapted to the organisations’ needs and capacities. But in many cases it is useful to start with the problem in order to identify all the stakeholders concerned.
The focus of a results-based project is the target group. Since the project also aims at achieving sustainability, in addition to the target group, other players have to be considered at this stage, by understanding their potential role in the project and their interests and expectations in terms of benefits. Right at the beginning, it is therefore necessary to identify all the stakeholders likely to be affected (either positively or negatively) by the project and analyse their potential involvement in it. The stakeholders are “not only the people and institutions that carry out the project, but also those structures and organizations that play a role in the project environment”.
1.1.1 Methodology
As the first action in the project design process, people in charge of the project design can get organized into a group. This group is usually chosen when the first project idea emerges and – if implementation is confirmed – it could support the identification of the project team (including members of the design team). The main task of the project team is to coordinate the whole process and the project implementation. This does not mean that they are alone in carrying out the activities, but that they are accountable for them.
In the ideal case, the project should be designed using participatory planning methods which actively involve the organisation members. For instance, a project design workshop combined with a series of brainstorming sessions, individual meetings, focus group discussions are very useful. Indeed, one single workshop often facilitates the prevailing of dominant positions, based on power, leadership and influence, whereas small group discussions allow better reflection, better participation by women and more inclusive plans, and generate stronger ownership by the members. In some cases, the capacities of less experienced stakeholders need to be reinforced. In other cases, stakeholders may abuse their power, and stakeholders might not be allowed to speak freely in front of them. This can also be due to a lack of capacity in participatory and inter-active methods.
Although in practice this variety of participation and ownership rarely happens, due to many different factors, in the case of organisations, the team can build on consultation and management processes within the organisation’s governing mechanisms (such as for instance the general assembly, supervisory and working committees) The project team must bear in mind that there is a direct relationship between participation and sustainability, and should be aware of the risks of exclusive processes.
A series of tools exist for identifying and analysing the different stakeholders. These tools will be presented during the training.
Context of a project and example of a stakeholder analysis (please click to see)
1.1.2 Selecting the target group (direct recipients and ultimate beneficiaries)
The target group is a group of people who will benefit from the project. Within the stakeholder analysis, the target group analysis is of particular relevance and requires special attention.
In most projects, organizations will not deliver direct services to persons, but run services that build the capacities of organizations so they can provide new or better services to a certain group of people. We therefore need to distinguish between the direct recipients of project outputs or services and the ultimate beneficiaries.
The direct recipients are those who are directly affected by the core problem, and who will benefit from the project outputs and services. The ultimate beneficiaries are those who will benefit from the project in the long term. During project design, it is particularly important to assess the capacity of the direct recipients carefully: are they really committed, do they have the resources (time, staff, etc.) to participate in the project, and do they have the capacity to play their role in the project? Building up the capacity of the target groups is crucial not only to achieving the project’s objectives and outputs, but also to ensuring that the benefits are sustained once the project ends.
Target group:
Those benefiting from the project. You can distinguish between:
- direct recipients (or direct beneficiaries): the group/institutions who will be directly affected by the project at the level of the outputs, e.g. primary organisation, a union or federation;
- ultimate beneficiaries: those who benefit from the project’s development objective (such as local food security) in the long term, e.g. family of the organisation members, consumers and clients of products and services provided by the organisation.
Project partners:
Support and participate in the design and implementation of the project. They can be part of the project’s Steering Committee, e.g. Ministries, organisation apex body, trade unions, employers’ organizations, support agencies.
1.1.3 Analysing the target group: a SWOT analysis
As a parallel process in the analysis of the situation, a self-diagnosis of the capacity of the direct recipient to carry out the proposed project needs to be done through the analysis of the organisation’s or support organization’s strengths and weaknesses, as well as the opportunities and threats in the external environment (a SWOT analysis). The SWOT analysis is a powerful tool for carrying out a diagnosis of the target group. It can be used to complement and enrich the stakeholder analysis.
A SWOT analysis examines both the internal and the external situation of the target group and partners. Therefore it is particularly useful in projects where the target group’s capacities might have a big influence on the achievement of the objectives, or when there are external elements in the context of the target group’s capacities that can affect the project.
In a nutshell, a SWOT analysis can reveal the capacity of the target group and the implementation partners to perform their roles, as well as their comparative advantages. It can also show hidden obstacles to a potential project.
Strengths and weaknesses
Strengths and weaknesses are internal features of the target group that facilitate or hinder its ability to achieve certain results. Strengths and weaknesses are always relative to a certain goal. Therefore, when used for internal analysis of the applicant and partners, strengths and weaknesses analysis must concentrate on those features that can be positive or negative for participating in the project and providing and sustaining quality services to the target group.
When the SWOT analysis highlights a lack of capacities on the part of the applicant to perform all the activities listed in the project, the organization must find other partners among the stakeholders who can fill the capacity gaps.
Strengths and weaknesses can be modified to some extent by the project. Project designers should include measures to consolidate the key strengths and overcome critical weaknesses of the stakeholders, particularly ones that could compromise the sustainability of the project results. A good project strategy takes as much advantage as possible of stakeholders’ strengths. It is also important to take measures to neutralize the impact of weaknesses.
Opportunities and threats
Threats and opportunities are factors in the context outside the target group that can trigger events which affect the organization’s ability to achieve certain results. Unlike strengths and weaknesses, threats and opportunities cannot be manipulated, since they are beyond the control of the organization. What the organization can do is develop strategies to maximize its ability to take advantage of the opportunities and to minimize any impact of the threats.
Threats and opportunities are identified during project design. In this way, the project strategy can include measures to benefit from the opportunities. In addition, the strategy can include preventive action to lessen the negative effects of threats. Such measures would help to bring the negative effects down to an acceptable level at which the success of the project is not compromised.
1.2 Analysing the problem
Every project aims to help solve a problem that affects the target group or groups.
The problem analysis identifies the negative aspects of an existing situation and establishes the “cause and effect” relationships among the problems that exist. The core problem of the target group must be clearly identified. It is essential to understand the root causes of the problem and the effects the problem has on the beneficiaries. This can be represented diagrammatically by constructing a problem tree. The causes are structured by clustering similar ones and by developing a hierarchy of causes.
The problem tree has three different components:
1.2.1 The core problem
The core problem must be the starting point for every project. It provides the rationale and gives it meaning, in that it aims to make a significant contribution to solving a relevant problem for the target group. If the starting point for the project is a detected opportunity, then it is still important to identify the main problem (or challenge) hindering the desired situation from becoming reality. So, regardless of our initial positive or negative considerations when looking at the existing situation, we will always end up identifying the core problem (or challenge) to tackle.
1.2.2 The causes of the core problem
Each problem has its own history, and we have to find out what underlying factors (causes) have led to the current situation. Once identified, the causes (roots) of the core problem are located under the core problem:
The core problem is my toothache. Usually we stop at the first level of the cause, just going to the dentist to remove the caries. But it is a short-term solution, since the root of the problem was not tackled. I therefore need to ask all the relevant questions and make the cause-and-effect links, then change my dietary habits and solve the core problem in the long term.
The key purpose of this analysis is therefore to make sure that all the “root causes” are identified and subsequently addressed in the structure of the project, not just the “symptoms” of the problem. The key to a successful project is to tackle the causes of the core problem. Unless we do that, the problem will arise again.
1.2.3 The effects of the core problem
The cause-and-effect chain can also be continued beyond the core problem. In this case, the chain forms the set of events that are the effects of the core problem. All problems or needs are embedded in a social, political or environmental context and are often systemically linked to other needs. Therefore, anything affecting one area also interacts with others parts of the system. The core problem generates consequences or other problems. The effects of the core problem are in the form of more general social, environmental, political or economic conditions (usually negative) that result from the problem. They are placed on top of the core problem:
A problem analysis aims to understand the causes of the core problem you want to address with your project.
1.2.4 Building the problem tree
Key actions in building a problem tree:
1) Organise a participatory workshop, discussions and meetings with the target group and all the relevant stakeholders, paying particular attention to the ability of different groups (e.g. women or youth) to participate and voice their issues.
2) Starting with the core problem the project team identified at the beginning of the situation analysis, openly brainstorm on problems and their causes which stakeholders consider to be a priority. Each participant could write a problem on a card. All the problems will then be posted on a wall or flipchart.
3) Use the problems identified through the brainstorming exercise to reformulate the core problem and then begin to establish a hierarchy of causes and effects, as illustrated in The Diagram:
Diagram : Hierarchy of causes and effects
4) All other identified problems are sorted in the same way. The guiding question is “WHY?” More causes can be added
5) Connect the problems with cause-effect arrows
6) Look at the problem tree and verify its cause-effect links ù
Source: European Commission, 2004, Aid Delivery Methods, Volume 1 : Project cycle management guidelines, EC, Brussels
The exercise of building a problem tree is important as it is an opportunity to discuss openly the problems to address with all the stakeholders, whilst it is also a learning process.
During the process, remember that not everyone will necessarily feel able to express openly the problems they have identified. This may be because they feel it may affect their relationships with others or because they are not used to speaking out in large groups. For example, gender issues might be seen as difficult to discuss in a large group even if they are affecting the business success of the organisation. In some cases, it may therefore be useful to set up smaller groups to brainstorm problems. The membership of these groups might be limited to one stakeholder group, e.g. women members or management board members. It is therefore important to determine whether the different groups of people perceive the problem in the same way.
Interviews and anonymous questionnaires may also be used to collect additional points of view. Although these techniques do not promote open dialogue and active participation, they provide additional data that might otherwise be inaccessible.
The product of the problem analysis workshop will be a simplified version of the reality without trying to explain all the complexity of the problems. It is a summary of the existing negative situation. It is the most important stage of the project design because it will be the basis of the subsequent analysis and decision-making on the project priorities.
Problems need to be stated as a subject, a verb and an object of the verb. They should not be stated as a lack of something because this presupposes the solution.
When formulating the problems, it is important to avoid:
• vague concepts such as “lack of infrastructure”: we should specify the type of infrastructure (feeder road, electricity network, school buildings) and the geographical place;
• interpretation of problems: “too much bureaucracy in local government”: we should specify whether it is a problem of delays, of adequate support, of computerised system, etc.;
• absence of a solution, such as “lack of money so young people cannot get vocational training”: we should analyse why they cannot get access to training: “fees are not affordable”.
Problem Tree Example - This Problem Tree is a Simplified example.